TRIBALSTATE COMPACI' FOR CONTROL OF CLASS m BLACKJACK ON THE

RED LAKE BAND OF CHIPPEWA RESERVATION IN MINNESOTA

WHEREAS, the State of Minnesota (hereinafter "State") and the Red Lake Band of Chippewa, (hereinafter "Band) are separate sovereigns, and each respects the laws of the other; and

WHEREAS, the Band exercises overnmental authority within the Red Lake Reservation (hereinafter "Reservation"), whic f , for purposes of this com act, means those tribal trust 2 lands located in Warroad, Roseau County and specifically escribed as: Lot 1, West 67 feet of Lot 4, Auditor's Plat #19 of Government Lot 3 (Section 287, 163 North, Range 36 West); and

WHEREA$ the Congress of the United States has enacted the Indian Gaming Regulatory Act (hereinafter "IGRA"), Public Law 100-497, 102 Stat. 2467,25 U.S.C. Sections 2701 to 2721 (1988) creating a mechanism through which the several States and Indian tribal governments may allocate jurisdiction and control of Class 111 gaming activity which occurs on their lands; and

WHEREAS, the Band is a federally recognized Indian tribal government which is duly qualified to conduct certain types of Class 111 gaming on its lands;

WHEREAS, the State of Minnesota pursuant to Minnesota Statute Section 3.9221 (1990), . authorizes the Governor or his representatives to negotiate with regard to compacts with the several Indian tribal governments in the State of Minnesota; and

NOW THEREFORE, in consideration of the mutual undertakings and agreements hereinafter set forth, the Band and the State enter into the following compact.

Section 1. Findings and Declaration of Poliq

1.01 Findings

As the basis for this compact, the State and the Band have made the following findings:

1.02 This corn act shall govern the licensing, re lation and play of the banking card ame of" 5 lackjack' or 'Twenty-one (21)" ? hereinafter "Blackjack") within the

keservation. Blackjack is a banking card game which involves the use of one or more decks of playing cards, the purpose of which is to reach the number "21" (or as close thereto as possible without exceeding the number "21") through the cumulative addition of cards dealt to the players and the house. The game shall be played as described in Section 4 of this compact.

1.03 The purposes of this compact generally are to rovide the Band with the P opportunity to offer Blackjack in a way that wi 1 benefit the Band economically, that will insure fair operation of the game, and that will minimize the possibilities of corruption and infiltration by criminal influences.

1.04 The Band has the right to license and regulate gaming activity on its lands in accordance with the IGRA and this compact.

1.05 A principal goal of Federal Indian policy is to promote tribal economic development, tribal self-sufficiency, and strong tribal government;

1.06 The State and the Band find it to be consistent with the IGRA, and the public health, safety and welfare to regulate Blackjack pursuant to this compact.

1.07 The Band has operated various forms of Class II gaming, will operate Class 111 video games of chance pursuant to a Tribal-State compact, and has implemented controls satisfactory to the Band for the responsible operation and regulation of the games.

1.08 The Band will operate Blackjack pursuant to this compact and contemporaneously with its Class I1 and Class 111 garmng operations.

1.09 Nothing herein shall in any way affect or alter the terms of the Tribal-State compact for control of Class 111 video games of chance on the Red Lake Reservation in Minnesota, executed by the Band and the State in 1991 and approved by the Secretary of the Interior.

1.1 Declaration of Policy

1.2 The State recognizes the positive impacts that gaming may provide to the Band. The Band may utilize gaming-generated financial resources to fund programs that provide various vital services to Band residents. These programs may include education, health and human resources, housing development, road construction and maintenance, sewer and water projects, and economic development. The State also recognizes that the economic effects of such gaming enterprises may extend beyond triba to the tribe's neighbors and surrounding communities, and mutual respect and understanding among Indians and non-Indians.

1.3 The Band and the State, throu h this compact and the regulations incorporated

both parties. B herein, shall attempt, in good aith, to address the legitimate common concerns of

IGRA for Class Ill Gaming

2.1 Duration

Subject to the provisions of Section 9, this compact shall become effective upon execution by the Governor of the State, ratification by the Band, approval by the Secretary of the Interior and publication of that approval in the Federal Register

ursuant to the IGRA. This compact is entered into pursuant to the IGRA, State raw and Band law. Minnesota Statutes Section 3.9221 (1990) is incorporated herein by reference. It is the intent of the State that, if the Minnesota Legislature prohibits the play of Blackjack for all urposes as against public policy and as a R matter of criminal law, this compact s all not be construed to provide for the continued play of Blackjack by the Band pursuant to this compact. It is the intent of the Band that, if the Minnesota Legislature prohibits the play of Blackjack for all purposes as against public policy and as a matter of criminal law, this compact shall not be construed to prohibit the continued play of Blackjack by the Band pursuant to this compact. As provided in Mim. Stat. S 3,9221, subd. 4 (1990), in

the event of a request for a renegotiation under section 2.2 of this compact the existing compact will remain in effect until renegotiated or replaced.

(1) Except as provided in subsection (2) below, the State or the Band may, by appropriate and lawful means, request negotiations to amend, replace or repeal this compact. In the event of a request for renegotiation, this com act shall P remain in effect until renegotiated or replaced. Such requests sha 1 be in writing and shall be sent by certified mail to the Governor of the State or the Chairman of the Band at the appropriate governmental office. If such a request is made by the Band, it shall be treated as a request to negotiate pursuant to the IGRA. The parties shall have 180 days to negotiate and all further rocedures and remedies D available under the IGRA shall thereafter apply. The tate and the Band may agree to extend the 180 day period without prejudice to the rights of either party under this section.

(2) Subsection (1) shall not permit the Band to request negotiations to amend, replace or repeal the provisions of section 2.3 (1) and (2) of this compact and, by entering into this compact, the Band waives any right it may have under state or federal law to request such negotiations.

Reaues nder the IGRA for Class ID Gamiqg 2.3 Effect on Rieht to t Compacts U

(1) By enterin into this compact, the Band waives any right it may have under . state or federa f law to request the State to negotiate a compact for an form of Class 111 gaming that is permitted by the State only in conjunction wit i a private social bet. However, nothing in this section shall affect the right of the Band to request the State to negotiate a compact governing any other form of Class 111 gaming which the State permits for charitable, commercial or governmental pu oses. In the event such negotiations are requested, all provisions of the L IG shall apply.

(2) From the effective date of this compact, the Band also waives any right it may have under state or federal law to request the State to negotiate a compact governing pari-mutuel wagering (or any other form of wagering) on races conducted at any racetrack, inside or outside the State of Minnesota, and broadcast to a facility on the Band's reservation. However, if the State enacts a statute to permit such wagering at any site, other than a licensed racetrack within the State, the Band may request such a compact, but the State has no obligation under state or federal law to negotiate or enter into such a compact if the State has entered into such compacts in a number equal to the number of such facilities authorized under state law for non-Indians or non-Indian entities.

. . . d o n 3. Allocation of Junsdmon

. . 3.1 Tribal and State Jurisdxtlon

This compact shall not be construed to limit any jurisdiction or remedies available to either party pursuant to the terms of the IGRA or other applicable law.

For Blackj& w o n 4. Regdato~ Standards

4.1 Assessment to Assist State kh.mstratio . .

n.

In order to assist the State's administration of its responsibilities under this compact, the Band agrees to pay the State Department of Public Safety, Gambling Enforcement Division the sum of thirteen thousand six hundred thirty- six dollars and thirty-six cents ($13,636.36) within thirty (30) days of the effective date of this com act or on October 1, 1991, whichever is later. The Band agrees that on July 1, 1 8 92 and each July 1 thereafter during the term of this compact, the Band will pay a like sum to the State.

4 2 No Credit Extended

All gaming shall be conducted on a cash basis. Except as herein provided, no person shall be extended credit for gaming by any gaming facility operated within the Band, and no operator shall ermit any person or organization to offer such Y credit for a fee. This section sha 1 not restrict the right of the Band or any other person to offer check cashing or to install or accept bank card or credit card transactions in the same manner as would be normally permitted at any retail business within the State.

4 3 m u m Age . .

for Plaven

No person below the age of 18 on the date of gaming shall be permitted to play Blackjack. If any person below the age of 18 plays and otherwise qualifies to win, the prize shall not be paid, and the estimated amount wagered during the course of the game shall be returned to the minor.

4.4 Inspection

Agents of the Department of Public Safety of the State of Minnesota, or their designated representatives, shall upon the presentation of appropriate identification, have the right to gain access, without notice during normal business hours, to all premises used for the play of Blackjack or the storage of equipment related thereto, and may inspect all premises, equipment, records, documents, or items related to the play of Blackjack in order to verify compliance with the provisions of this compact. Inspections made pursuant to this section shall not be conducted in a manner which disrupts normal business o erations

available within the Department of Public Safety. P and shall be conducted by agents who maintain the highest security c earance

The game of Blackjack shall be played in accordance with the following regulations.

(1) Definitions:

The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:

A. "A Blackjack shall mean an ace and any card having a point value of 10 dealt as the initial two cards to a player or a dealer, provided that if the

player has a ten value card and an Ace after splitting a pair of Aces or Tens, that is not a blackjack.

"Dealer" shall mean the person responsible for dealing the cards in the game of Blackjack.

"Hard Total" shall mean the total point count of a hand which contains no aces or which contains aces that are each counted as 1 in value.

"Soft Total" shall mean the total point count of a hand containing an ace when the ace is counted as 11 in value.

"Propositional Wager" or "Proposition Bet" shall mean an additional wager that is placed at the sole discretion of the player but would not affect the normal play of a hand, as specified in sect~ons 4.5(9) through 4,5(13).

"Game" shall mean the game of Blackjack as defined in section 1.02 of this compact.

Cards; Number of Decks; Value of Cards:

Blackjack shall be played with at least one bordered deck of cards with backs of the same color and design and one colored cutting card. Before being put into play, the cards shall arrive at the gaming location sealed and wrapped.

The value of the cards contained in each deck shall be as follows:

1. Any card from 2 to 10 shall have its face value; 2. Any Jack, Queen or King shall have a value of ten; 3. An ace shall have a value of eleven unless that would give a player or

the dealer a score in excess of 21, in which case, it shall have a value of 1.

Wagers:

No more than seven players shall be allowed to make wagers at any single gaming table for any given hand.

Prior to the first card being dealt for each round of play, each player at the game of Blackjack shall make a wager against the dealer which shall win if:

1. The score of the player is 21 or less and the score of the dealer is in excess of 21;

2. The score of the player exceeds that of the dealer without either exceeding 21; or

3. The layer has.achieved a score of 21 with the first two cards (i.e. a Blac R -jack) and the dealer has achieved a score of 21 with more than two cards.

Except as otherwise provided in section 4.5(3)(B)(3), a wager made in accordance with this subsection shall be a push when the score of the player is the same as the dealer, provided, however, that a player's wager shall be lost when the dealer has a blackjack and the player has a simple 21 which is

not a blackjack, unless the Band chooses to permit the casino to consider a player's 21 (that is not a blackjack) a tie (push) when the dealer has an ace under this 10 up card.

Except as otherwise provided in these regulations, no wager shall be made, increased or withdrawn after the first card of the respective round has been dealt.

All wagers shall be made b placing gaming chips or plaques on the g appropriate areas of the ta le layout. Cash ma be accepted rovided that x is confirmed by the dealer and a casino supervisor.

P the such acceptance of cash is limited to an exc ange of cash or chips and

The Band shall establish minimum wa ers and maximum wagers permitted + at each blackjack table in the casino. he minimum and maximum wagers shall be conspicuously posted at each table. The Band, at its discretion, may change the minimum and (or) maximum at any table, provided that the players that are already playing at the table shall not be required to abide with the new minimum. Any player may chose to bet the new maximum. If the maximum bet at any given table is greater than or equal to $200, the Band shall provide the increases surveillance required under section 4.5(7)(B).

Except for a blackjack all winning wagers made in accordance with subsection A of this section shall be paid at odds of 1 to 1. At the discretion of the Band a Blackjack shall be paid at the minimum odds of 3 to 2, and the maximum odds of 2 to 1. The odds for the payment of a blackjack shall be conspicuously posted at the gaming table.

Once the first card of any hand has been dealt by the dealer, no player shall handle, remove or alter any wagers that have been made unless the dealer approves such an alteration or removal of a wager in accordance with these regulations.

Once a wager on the insurance line, a wager to double down, a wager on an over under 13, or a wager to split pairs has been made and confirmed by the dealer, no player shall handle, remove or alter such wagers unless the dealer approves such a removal or alteration in accordance with these regulations.

The Band may preclude a person who has not made a wager on the first round of play from entering the game on a subsequent round of play prior to a reshuffle of the cards occurring. Any person permitted by the Band to enter the game after the first round of cards is dealt may be limited by the Band to a wager of the minimum limit posted at the table until the cards are reshuffled and a new deal is commenced.

Any player who, after placing a wager on any given round of play, declines to place a wager on any subsequent round of play may be precluded by the Band from placing any further wagers until that deck or shoe of cards is completed and a new deck or shoe is commenced.

Opening of Table for Gaming:

After receiving the one or more decks of cards at the table, the dealer shall sort and inspect the cards and the floor person assigned to the table shall venfy the inspection.

After the cards are inspected, the cards shall be spread out face upwards on the table for visual inspection by the first player or players to amve at the table. The cards shall be spread out in horizontal fan shaped columns by .

deck according to suit and in sequence.

ShuMe and Cut of the Cards:

Immediately prior to commencement of lay and after an round of play as

they are randomly intermixed. P K may be determined by the Band, the dea er shall shuffle t e cards so that

After the cards have been shuffled, the dealer shall offer the stack of cards, with backs facing away from him, to the players to be cut.

The player designated by subsection D of this section or the dealer as designated in subsection E of this section shall cut the cards by placing the cutting card in the stack at least 10 cards in from either end.

The player to cut the cards shall be:

1. The first player to the table if the game is just beginnin&; 2. The player on whose box the cutting card appeared dunng the last

round of play; 3. The player at the farthest point to the right of the dealer if the cutting

card appeared on the dealer's hand during the last round of play. 4. The player at the farthest point to the right of the dealer if the

reshuffle was initiated at the discretion of the Band.

If the player designated in section 4.5(5)D refuses the cut, the cards shall be offered to each other player moving clochwise around the table until a player accepts the cut. If no player accepts the cut, the dealer shall cut the cards.

(6 ) Procedure for Dealing Cards born a Shoe:

The following procedures shall govern those gaming tables where the election has been made to deal from a shoe:

A. All cards used to game at blackjack shall be dealt from a multideck dealing shoe specifically designed for such purpose and located on the table to the left of the dealer.

B. Each dealer shall remove cards from the shoe with his left hand, turn them face upwards, and then place them on the appropriate area of the layout with his right hand, except that the dealer has the option to deal hit cards to the first two positions with his/her left hand.

After each full set of cards is placed in the shoe, the dealer shall remove the first card there from face downwards and place it in the discard rack which shall be located on the table immediately to the right of the dealer. Each new dealer who comes to the table shall follow the same procedure as described in this subsection before the new dealer deals any cards to the players. The first card which has been placed face down in the discharge rack, otherwise known as the "burn card," shall be disclosed if requested by a player.

At the commencement of each round of play, the dealer shall, starting on his left and continuing around the table toward his right, deal the cards in the following order:

1. One card face upwards to each box on the layout in which wager is contained;

2. One card face down to himself; 3. A second card face upwards to each box in which a wager is

contained; 4. A second card face down, turning his original card face up.

After two cards have been dealt to each player and the dealer, the dealer shall, beginning from his left, indicate each player's turn to act. Such player shall indicate to the dealer whether he wishes to double down, split pairs, stand or draw as provided in these regulations.

As each player indicates his decision(s), the dealer shall deal face upwards -

whatever additional cards are necessary to effectuate such decision consistent with these regulations and shall announce the new point total of such player after each additional card is dealt. At no time shall a player be allowed to touch the cards.

At the conclusion of a round of play, all cards still remaining on the layout shall be picked up by the dealer in order and in such a way that they can be readily arranged to lndicate each player's hand in case of questions or dispute. The dealer shall pick up the cards beginning with those of the player to his far right and moving counter-clockwise around the table. After all the players' cards have been collected the dealer shall pick up his cards and place them in the discard rack on top of the players' cards.

Whenever the cutting card is reached in the deal of the cards, the dealer shall continue dealing the cards until that round of play is completed after which he shall reshuffle the cards. If at the beginning of a new round, the first card to be dealt is the cutting card, the dealing stops and the dealer shuffles the pack.

No player or spectator shall handle, remove or alter any cards used to game at blackjack except as explicitly permitted by these regulations.

Each player at the table shall be responsible for correctly computing the point count of his hand and no player shall rely on the point counts to be announced by the dealer under this section without himself checking the accuracy of such announcement.

K. At any time when all players leave a table before play may be resumes the dealer must re eat the procedures contained in subsections 4.5(4)(B) and subsection 4.5 P 5).

(7) Procedure for Dealing Cards from the Hand:

The following procedures shall govern those gaming tables where the election has been made to deal from the hand:

A. Other than that the cards are dealt from the hand rather than a shoe the procedures described in sections 4.5(4), 4.5(5), and 4.5(6) shall apply.

B. At any table from which the cards are dealt from the hand there must be a camera capable of providing pan, tilt, and zoom surveillance at that table, and one pit boss or floor supervisor for every two such tables.

(8) Payment of a Blackjack:

A. If the first face up card dealt to the dealer is 2,3,4,5,6,7,8, or 9 and a player has a blackjack, the dealer shall announce and pay the winner at odds in play at that table, either immediately or at hand's conclusion.

B. If the first face up card dealt to the dealer is an Ace, King, Queen, Jack or Ten and a player has a blackjack, the dealer shall announce the blackjack but shall make no payment nor remove any cards until all other cards are . dealt to the players and the dealer receives his second card. If, in such circumstances, the dealer's second card does not give him a blackjack, the

layer having a blackjack shall be paid at odds in play at that table. If, [owever, the dealer's second card gives him a blackjack, the wager of the player having a blackjack shall constitute a tie or a push.

(9) Surrender:

A. The Band may, at its discretion, allow a player to elect to surrender. A surrender allows the pla er to discontinue play on his hand for that round r by surrendering one ha1 of his wager after the first two cards are dealt to the play and the player's point total is announced.

B. The Band shall promulgate rules specifically governing the play of surrender. Such rules shall be made available to any player upon request. The basic rules governing surrender shall be conspicuously posted at the location where blackjack is being played.

A. The Band may, at its discretion, allow a player to elect to place an insurance wager. A player may elect to place an insurance wager anytime the first card dealt to the dealer is an ace.

B. The Band shall promulgate rules specifically governing the placing of insurance wagers. Such rules shall be made available to any player upon request. The basic rules governing the placing of insurance wagers shall be conspicuously posted at the location where blackjack is being played.

(11) Doubling Down:

A The Band may, at its discretion, allow a layer to double down. Doubling down allows the player the option of ma fL 'ng an additional wager not in excess of his original wager after the first two cards have been dealt to him, and to make such an additional wager on any first two cards of any split . pair.

B. The Band shall promulgate rules s ecifically overning the placin of R d f double down wagers. Such rules s all be ma e available to any p ayer upon request. The basic rules governing doubling down shall be conspicuously posted at the location where blackjack is being played.

(12) Splitting Pairs:

A. The Band may, at its discretion, allow a player t o elect to split pairs. Splitting pairs allows a player who has been dealt two cards identical in value may elect to split the single hand into two separate hands provided that the player makes a wager on the separately formed second hand equal to the value of the original wager.

B. The Band shall promul ate rules specifically governing the splitting of pairs. d Such rules shall be ma e available to any player upon request. The basic rules governing the splitting of pairs shall be conspicuously posted at the location where blackjack is being played.

(13) Over and Under 13:

A. The Band may, at its discretion, allow a player to lace a wager on the point P total of the player's first two cards, as follows: be ore the commencement of each round of play, a player may wager that the point total of the first two cards will be twelve or less; and the player may wager that the point total of the first two cards will be fourteen or more. Aces shall count as "1". The amount thus bet shall not exceed the amount of the original wager.

B. The Band shall promulgate rules specificall governing the play of over and r under 13. Such rules shall be made availab e to any player upon request. The basic rules governing the play of over and under 13 shall be conspicuously posted at the location where blackjack is being played.

(14) Drawing of Additional Cards by Players and Dealers:

A. A layer may elect to draw additional cards whenever his point count total P is ess than 21 except that:

1. A player having a Blackjack or a hard total of 21 may not draw additional cards;

2. A player electing to double down may draw up to the posted limit; and

3. A player splitting aces shall only have one card dealt to each ace and may not elect to receive additional cards.

B. Except as provided in C below, a dealer shall draw additional cards to his hand until he has a total, as posted on the layout, at which point no additional cards shall be drawn.

C. A dealer shall draw no additional cards to his hand, re ardless of the point f count, if decisions have been made on all players' han s and the point count of the dealer's hand will have no effect on the outcome of the round of play.

(15) A Player Wagering on More Than One Box:

A. The Band may permit a player to wager on more than one box at the blackjack table provided, however, that the Tribal Council and its agents shall have the authority and discretion to prohibit this during hours when there are insufficient seats in a casino to accommodate patrol demand.

(16) Blackjack Tournament:

A, The Band may allow the play of blackjack tournaments where, in addition to the wager, players may win other prizes as provided for in the rules of that particular tournament. Any such blackjack tournament must be played in accordance with these regulations. The rules of such a blackjack tournament must be made readily available to players or potential players on request.

(17) Distribution of Blackjack Tips:

A. All tip bets won by a dealer and all other tips shall be deposited in a locking tip box in the dealer's pit area, and shall be pooled with all tips and tip bets accumulated by all other dealers and shall be divided not more frequently than weekly between dealers and s u p e ~ s o r y management personnel as defined by the casino upon a formula established by the Band. Cash tipping shall be prohibited.

(18) Staftkg & Surveillance Requirements:

The following staffing and surveillance requirements shall apply to the game of blackjack:

A. At all times during the conduct of blackjack games the following staff and surveillance equipment must be present:

(i) for casinos which have four or fewer tables:

I a) at least one cashier; b) at least one pit boss or floor supervisor for each pit area open; c) one dealer per table.

(ii) for casinos which have more than four tables:

(a) at least one cashier; (b) at least one pit boss or floor supervisor for each four tables or fraction thereof; (c) one dealer per table; and

(d) video surveillance equipment that will enable the casino to provide surveillance at any given table, provided that for any casino where cards are dealt from the hand, or where the limits are eater != than or equal to $200, the requirements of section 4.5(7) shal apply.

B. Except as otherwise provided, each dealer, pit boss and floor su e ~ s o r a must be licensed by the Band before beginning work. As a con ition of licensure each dealer, pit boss or floor supervisor must complete a training course prescribed by the Band. Such training course shall be similar in .

.

content and testin to other jurisdictions allowing blackjack. The course of training shall be o f not less than 30 hours in duration, and the content of the curriculum shall be developed in conjunction with the State Department of Public Safety. Officials of the Department of Public Safety may participate in any training programs offered by the Band without cost. Upon licensure each dealer, pit boss and floor supervisor shall be issued a photographic identification card. Such identification card shall display the name of the Band issuing authority, the date of expiration, and the name of the dealer or pit boss.

C. Each dealer, pit boss and floor supervisor shall be required to wear the photogra hic identification card described in subsection B of this section during a1 f times when they are working. Such identification card shall be reissued no less frequently than annually.

% d o n 5. Backeround Lnvestieations and Licensinv of Employees and Managers

5.1 Backeround Investivations of Management Officials

Prior to entering into a management contract under Section 12 of the IGRA, the Band shall obtain sufficient information and identification from each management official to permit the State to conduct a background check. This information shall be provided in writing to the State Commissioner of Public Safety, along with the standard fee, who shall conduct the background check and provide a written report to the Band regarding each person within 30 days of receipt of the request, if possible. The Band shall not enter into a management contract if any management official has been determined to be a person whose prior activities, criminal record if any, or reputation, habits, and associations pose a threat to the public interest or to the effective re lation and control of gaming, 3 or create or enhance the dangers of unsuitable, u air, or illegal practices, methods, and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto.

5.2 Backeround Investibtions of Em~lovees Prior to Emplo-pent

Prior to placing a prospective employee whose responsibilities include dealing Blackjack, serving a cashier in connection with Blackjack or supervising dealers or cashiers, the Band shall obtain sufficient information and identification from the applicant to permit the State to conduct a background check. This information shall be provided in writing to the State Commissioner of Public Safety, along with the standard fee, who shall conduct the background check and provide a written report to the Band re arding each applicant within 30 days of B receipt of the request, if possible. The and may employ any person who represents in writing that he or she meets the standards set forth in this section, but must not retain any person if (a) the Band determines that the applicant's

prior activities, criminal record, if any, reputation, habits and associations pose a threat to the public interest or to the effective regulation of gaming, or create or enhance the danger of unsuitable, unfair, or illegal practices, methods and activities in the conduct of gaming; (b) the apphcant has ever been convicted of a felony involving gambling; or (c) the applicant has been convicted of a felony within five years of starting employment with the Band. The restriction of subsection (c) shall not disqualify the applicant from em loyment if the Band by 1 governmental resolution waives such a restriction after t e applicant has demonstrated to the Band evidence of sufficient rehabilitation and present fitness.

Each person in the Band whose responsibilities include dealing Blackjack, serving as a cashier in connection with Blackjack, or supervising Blackjack dealers or cashiers shall be subject to periodic review comparable to that re uired for initial employment as provlded in section 5.2 by the State Department o 7 Public Safety, wh~ch review shall take place at least amually commencing with the date of employment. The Band shall provide sufficient information to the State Commissioner of Public Safety to pennit the State to conduct the background check on the employee. The Department of Public Safety shall conduct the necessary investigation within 30 days of written request therefor, if ossible, B subject to the standard fee, and shall provide a written report regar ing each employee. Employees who do not meet the requirements of Section 5.2 shall be dismissed.

5.4 Criminal History Data

Criminal history data compiled by the Bureau of Criminal Apprehension of the State Department of Public Safety on management officials, prospective employees, and employees shall, subject to applicable state or federal law, be released to the Band as part of the report regarding each person.

5.5 Licensing and Discipline of E m ~ I o v e e ~

All personnel employed by the Band whose responsibilities include dealing blackjack, serving as a cashier in connection with Blackjack, or supervising Blackjack dealers or cashiers shall be licensed by the Band. The Band shall publish and maintain a procedural manual for such personnel, which includes disciplinary standards for breach of the procedures.

Section 6. Accounting: and Audit Procedures.

The Band shall engage an independent certified ublic accountant to conduct an f: annual audit of the books and records of all Blac jack gaming conducted pursuant to this compact and shall make copies of the audit and all current internal accounting and audit procedures available to the State upon written request. To the extent possible under state law, the State shall not disclose any information obtained pursuant to such a request. Also upon written request, the Band shall make the accountant's work papers available for review at the office of the accountant or the Band. The Band shall permit the State to consult with the auditors before or after any audits or periodic checks on procedures which may be conducted by the auditors, and shall allow the State to submit written or oral comments or.suggestions for improvements regarding the accounting and

audit procedures. Within 30 days of receipt of any written or oral comments, the Band shall: (a) accept the comments and modify the procedures accordingly; or (b) respond to the comments with counterproposals or amendments. The State shall pay for any additional work performed by the auditors at the request of the State.

ction 7. Amendments to Re&atoq and Technical Standards for Blac-k

. The regulatory and technical standards set forth in section 4 of this compact shall govern the play of Blackjack on the Band's reservation unless those standards are amended pursuant to Section 2 of this compact or pursuant to the procedures set forth in this section. For purposes of this section, amendments to sections 4 may be made only upon the written recommendation for, and detailed explanation of the proposed amendment by either party. The State Commissioner of Public Safety and the Chairman of the Band may thereafter, by mutual written a reement, amend the technical and regulatory standards contained in section 4 o f this compact.

m o n 8. Definitions,

8.1 Class III gaming

For purposes of this compact, Class I11 gaming has the meanin given it by 8 section 4(8) of the IGRA, 25 U.S.C. S 2703, subsection 4(8) (1 88).

8 2 t.

A "private social bet" is a bargain in which the parties mutually agree to gain or loss by one to the other of money, property or benefit dependent on chance, although the chance is accompanied by some element of skill, which is made in a private, social context not part of or incidental to organized, commercialized or systematic gambling.

8 3 Gaming for charitable vurpses.

For purposes of this com act, "gaming for charitable purposes" is any gambling d' conducted pursuant to innesota Statutes sections 349.1 1 to 349.23 or any comparable state law which permits certain forms of gambling to be conducted by nonprofit organizations and requires that the proceeds be contributed to charity or other specifically designated lawful purposes.

8.4 S ; a w for ~overnmental purposes.

For purposes of this compact, "gaming for governmental purposes" is gambling conducted pursuant to Minnesota Statutes sections 349A.01 to 349A.15 or any other state law which permits the State of Minnesota or any of its political subdivisions to operate any form of gambling.

85 gamin^ for commercial Dmoses.

For purposes of this compact, "gaming for commercial purposes" is gambling conducted pursuant to a Minnesota law which permits gambling to be conducted by persons, organizations or entities and which permits those persons, organizations or entities to profit or obtain direct financial benefit from the

gamblinf . "Gaming for commercial purposes" does not include gaming for charitab e or governmental purposes or a private social bet.

8.6 Management Of6cia.h

For purposes of this compact, a management official is an person who has a r direct financial interest in, or management responsibility or any gamblin conducted pursuant to this compact, and in the case of a corporation, sha f 1 include those individuals who serve on the board of directors of such corporation and each of its stockholders who hold (directly or indirectly) 10 percent or more of its issued or outstanding stock.

This conZpaEt and all obligations hereunder shall be contingent upon (1) the Bois Forte, Fond du Lac, Grand Portage, Leech Lake, Mille Lacs, Red Lake, and White Earth Bands of Chippewa Indians, and the Prairie Island, Shakopee Mdewakanton, and Upper Sioux Communities intervening as laintiffs in the lawsuit entitled Lower Sioux Indian Comrnunitv v. State of Minnesota [u.s. District Court, District of Minnesota, No. 4-89- 936); and (2) the court in the above Lower Siow lawsuit entering a Consent Judgment incorporating the compact and its terms; and (3) the court in the above Lower Sioux lawsuit determining that consideration of the Report and Recommendation of Magistrate Bernard P. Becker, dated December 20,1990, is unnecessary.

Section 10. Effect of Breach,

In the event that any federally reco nized Indian tribal government bound by the 8 consent judgement described in Section breaches the consent judgment or a compact incorporated therein, the State shall direct an legal action at the breaching tribal government only, and such action shall not a d ect the validity of the remaimng compacts between the state and any nonbreaching party.

Section 11. Retention of Legal Arguments.

In the event this compact becomes inoperative or the conditions of section 9 are not satisfied, nothing in this compact shall be construed as a concession by any arty of any P legal position or argument it might have had concerning any form of Class I1 gaming in the absence of this compact, and no party shall be deemed to be estopped by the terms of this compact from making any argument it might have had in the absence of this compact.

Dated: h\axS. k . (\\\ 3 Dated: . /.</ -7r/

/

STATE OF MINNESOTA RED .LAKE BAND OF CHIPPEWA

BUREAU O F I N D I A N A F F A I R S

SEP 2 5 1991 Date

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